Multibagger Uno Minda stock gains 12.5% to hit record high after Goldman Sachs initiates coverage with a 'buy' tag
Uno Minda shares appears set to continue, even after 15 consecutive months of upward momentum without significant pullbacks. In today's trade, the shares extended their bull run, reaching a new all-time high of ₹1,188 apiece with a 12.60% intraday gain.This latest spike in share prices followed a report from global brokerage firm Goldman Sachs, which initiated coverage on the stock with a 'buy' rating and set a target price of ₹1,350 apiece.
It highlighted Uno Minda's strong position in the Indian auto components industry as a key factor in their optimistic outlook.Also Read: Mahindra & Mahindra cranks into top gear as demand tailwinds accelerate growthThe brokerage firm predicts that localization in high-margin areas will support profit growth visibility. It further added that the early product portfolio on E2Ws represents kit value optionally.“More room to run in 4W lighting and 2W alloy wheels.
The high multiplier on industry volume growth + stable margin profile," the brokerage firm added.Earlier, domestic brokerage firm Kotak Institutional Equities noted that Uno Minda is well-positioned to benefit from the growing EV penetration, thereby increasing its overall content per share.This positive outlook followed the company's announcement of a Technical License Agreement (TLA) with Suzhou Inovance Automotive Co., Ltd., China (Inovance Automotive), to manufacture and sell select high-voltage electric vehicle products for passenger and commercial vehicles in India.Also Read: Tata Motors puts pedal to the metal but margin, market share concerns remainUnder this agreement, Uno Minda will be able to produce combined charging units (CCU), e-axles, inverters, and motors. In exchange for the technology, the company will pay a
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